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When it comes to the growing European economies, most of us would indicate Germany, France or the United Kingdom. These are, of course, some of the most attractive countries for investors setting up new companies. However, it turns out that starting up a business in the Baltic States can be a hit!Estonia
Estonia is one of the smallest European countries but in recent years it has been developing very dynamically. Do you need an example? Taxify (currently known as Bolt). Founded in 2013 and based in Tallinn, the company now operates in 35 countries. It is estimated that as many as 30 million people use this platform worldwide. Among other Estonian brands that have achieved global success, it is worth mentioning Toggle, Skype and TransferWise. Interestingly, Estonia ranks 6th in Europe in terms of ease of doing business and is also the country with the highest quality cybersecurity. So is the e-commerce market in Estonia doing well? Of course! In this small country with just over a million inhabitants, there are as many as 5,000 online stores!Latvia
Latvia is definitely no less attractive country for investors and entrepreneurs. Currently, electronics is the fastest-growing e-commerce industry in Latvia. It is estimated that in 2019 its annual value was 120 mln USD. In Latvia, brands such as Aerone and Cenos were born.Lithuania
The start-up market is developing there at an impressive pace with an annual growth rate of 4%. Currently, the most recognizable Lithuanian start-up is the MailerLite brand. Other well-known companies based in Lithuania include XtGem or TransferGo. Just like in Estonia and Latvia, the e-commerce market in Lithuania seems really promising. The annual growth rate is estimated at 7.9%.Shopping Habits
Estonia
Estonians are more and more eager to shop online. Of course, as in many other countries, international e-commerce platforms such as AliExpress or Amazon are well known in Estonia. It is worth noting, however, that customers in this small country prefer to support the local market rather than the foreign one. More than 40% of Estonians order products only at local shops (source: ecommercenews.eu). As e-commerce in this country is becoming a part of daily life, Estonians more often make online transactions. And what's the result of that? The decrease of the average online transaction amount. In 2017, the average online order in Estonia was 40 euros, while in 2019 - only 33 euros. Estonians most often buy online: concert tickets, cinema or theatre tickets, clothes and sport equipment.Latvia
At the end of 2018 as many as 98% of households with children had access to the Internet (source: csb.gov.lv) - thanks to this, an increasing number of people decide to shop online. So what products do they choose? Electronics is the most popular, besides that Latvians often order clothes, toys, furniture and food. Let's check out the most visited e-commerce platforms in Latvia:- ss.lv
- 1a.lv
- amazon.de
- ebay.co.uk
- amazon.co.uk
Lithuania
Lithuanians quickly and rather easily switch to using the new mobile services, that's why many people in this country use payment cards, electronic signatures and online banking. Lithuanians also love to go online to find some goods. And what do they choose usually? Above all, they buy: clothes, tickets for various types of events, personal and household goods and food. The most popular e-commerce platforms in Lithuania are:- skelbiu.lt
- aliexpress.com
- pigu.lt
- alio.lt
- ebay.com
Internet Users
The Baltic States fit perfectly into the global trend. Each year, the number of Internet users in all of these countries increases. Let's compare, for example, what was the situation there in 2016: in Lithuania 69.88% of the population used the Internet, in Latvia it was very similar - 69.93%, while in Estonia - 76.57%. It is estimated that by 2022 in Estonia and Latvia the number of active internet users will increase by 3%, while in Lithuania by 4% (source: statista.com).Social Media
| Lithuania | Latvia | Estonia | |
| 1. | Facebook (59,98%) | Facebook (64,95%) | Facebook (52,73%) |
| 2. | Pinterest (17,17%) | Pinterest (12,03%) | Pinterest (14,95%) |
| 3. | Twitter (8,56%) | Twitter (11,48%) | Instagram (13,86%) |
| 4. | Instagram (7,87%) | Instagram (7,27%) | Twitter (12,29%) |
| 5. | YouTube (4,75%) | YouTube (2,72%) | YouTube (3,07%) |
| 6. | Tumblr (0,73%) | Tumblr (0,61%) | VKontakte (1,32%) |
Payment Methods
Definitely the most preferred payment method in Estonia and Lithuania is mobile payment (48% and 51% respectively), while Latvians are most likely to use credit cards (43% market share). Mainly, these two forms of payment are widely used in the Baltic States.
What's surprising, Latvians and Lithuanians practically never choose to use prepaid cards (only 1% in both countries). It is worth noting that in the Baltic States (just like in other European countries) consumers tend to use more eagerly electronic wallets - each year more and more people choose this payment method. Currently in the Baltic States e-wallets constitute about 10% of the market.
Mobile Apps and Websites
| Lithuania | Latvia | Estonia | |
| 1. | Google (95,87%) | Google (96,12%) | Google (96,21%) |
| 2. | bing (2,21%) | YANDEX RU (1,43%) | bing (1,26%) |
| 3. | Yahoo! (0,99%) | bing (1,22%) | YANDEX RU (1,09%) |
Search Engines
| Lithuania | Latvia | Estonia | |
| 1. | Google (95,87%) | Google (96,12%) | Google (96,21%) |
| 2. | bing (2,21%) | YANDEX RU (1,43%) | bing (1,26%) |
| 3. | Yahoo! (0,99%) | bing (1,22%) | YANDEX RU (1,09%) |
Are you Planning to Make Investments in the Baltic States? Discover what Markets have a Future There!
Estonia
As I have already mentioned, Estonia stands out from other European countries when it comes to cybersecurity. So if you are looking for a company offering high quality IT services, Estonia will be a good choice. What industries have a future in Estonia?- fintech,
- software houses,
- cybersecurity,
- energetics,
- marine industries,
- mechanical engineering.
Latvia
Interestingly, Latvia is one of the 10 countries in the world with the fastest internet. This encouraged local entrepreneurs to focus on offering online services. Today, the fastest growing sectors are:- engineering,
- start-up,
- transport and logistics,
- MICE (Meetings, Incentives, Conferencing, Exhibitions) tourism.
Lithuania
Lithuanians are certainly a nation with which you can communicate easily. The country's inhabitants are famous for their multilingualism - 90% of Lithuanians speak at least one foreign language. The most popular foreign languages in Lithuania are Russian, English, French and German. This makes Lithuania an interesting direction for entrepreneurs starting their own companies. The most promising markets in Lithuania are:- medical services,
- tourism,
- biotechnology,
- IT.
